Don't Panic Over JinkoSolar's Drop Today

The global solar market is improving rapidly, but expectations are still getting ahead of reality. That's what hurt JinkoSolar Holdings Co., Ltd.  (NYSE: JKS  ) today after reporting vastly improved earnings and still watching its stock drop 3% during trading.  

First-quarter shipments were up an impressive 72% to 581.2 MW, and revenue jumped 73% to $323.9 million. JinkoSolar even swung to a small profit of $1.5 million from a loss a year ago.

What investors need to keep in mind is that the first quarter is seasonably slow for solar companies, who usually see a rush of demand in the fourth quarter. That was the case for JinkoSolar, as indicated by a drop in shipments from 586.3 MW, although that was quite a bit smaller than the drop experienced by other solar companies.

JinkoSolar also has projects under construction, which can swing revenue and earnings from one quarter to the next. 140 MW of projects are expected to be completed in the second quarter, with construction starting on 200 MW to 250 MW more. Long-term, these projects and growing global demand will help drive results higher, so I wouldn't be too concerned about a slight drop in the stock today, because operations are headed in the right direction.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 28, 2014, at 12:09 AM, chrisceeaustin wrote:

    Be patient with this stock. It may earn $5 or $6 per share this year. That may translate to a 90 dollar stock price.

  • Report this Comment On May 28, 2014, at 11:24 AM, never2dull4u wrote:

    Dont' panic?

    I'm more curious as to why CSIQ and JKS are trading in the mid $20's when TSL (far superior company by all metrics) are still trading in the low teens.

    I started picking up JKS last week. I just don't understand how the hedge fund managers as well as analysts think when picking stocks. TSL is by far a superior company. It's market value should at least be 5X it revenues.

    One thing is certain, investors/traders only chase stocks that are moving UP. Patient investors will be rewarded (just as I have with AAPL).

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2973074, ~/Articles/ArticleHandler.aspx, 10/25/2014 12:07:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement